New York City shuns Wells Fargo over discrimination claims
The municipality and the bank have been at odds over similar issues in the past, and no agency currently has deposit accounts with the lender.
Workforce management
How Philadelphia is laying the groundwork for a public bank
The City Council recently voted 15-1 to establish a financial authority that would provide credit enhancements on loans to underserved borrowers. Public banking advocates say the effort is both an interim step for Philadelphia and a test case for other cities.
Regulators expect to release CRA revamp as soon as this month
The long-awaited Community Reinvestment Act reform plan is likely to address climate change and bank partnerships with nonbank lenders, while also taking into account the shrinking number of U.S. bank branches, government officials said Monday.
Lenders warned they risk irrelevance if they’re not inclusive
Credit unions and banks need to ask themselves if they're finding ways to say "yes" to consumers who too often hear "no" from mainstream institutions. Otherwise, they perpetuate a system that excludes the poor and people of color and drive them toward nonbanks, said Pablo DeFilippi of Inclusiv Network and other experts.
Wells Fargo sued for discrimination against Black borrowers
The complaint seeks unspecified damages over the bank’s mortgage origination and underwriting practices, alleging minority homebuyers were excluded from affordable, low-risk loans.
Appraisals undervalue refis for Black borrowers: Fannie Mae
The researchers found that the disparities that emerged from the analysis of 1.8 million appraisals from 2019 and 2020 were statistically significant.
Regulator finds signs of racial bias in appraisal forms
The Federal Housing Finance Agency found several comments that could lead to fair lending concerns in the “neighborhood description” section of reports.
Treasury invests $8.7B in banks, credit unions focused on underserved
More than 180 community development financial institutions and minority depository institutions will receive the federal funds under a pandemic-era program. “It’s a lifesaver,” a credit union CEO said.
‘Just tired’: Why so many bank, credit union CEOs are calling it quits
Business and regulatory pressures were already weighing on aging executives before the onset of the pandemic led many to delay retirement plans. Now as the crisis eases, an increasing number are finally stepping down.
FHLBank San Francisco, Urban Institute launch housing equity project
The organizations have created the Racial Equity Accelerator for Homeownership, a two-year incubator for the development of innovations to address racial inequality in wealth and housing.
Democratic senators look to ‘LIFT’ first-generation homeownership
The proposal calls for a 20-year mortgage with Ginnie Mae and Treasury participation, but critics suggest that other measures would be more effective in bridging the gap in home equity.
Support builds for acting FHFA head to get the job outright
Sandra Thompson, who has been acting director of the Federal Housing Finance Agency since June, has won backing from the mortgage industry and community groups for the experience she brings to the role. The push comes as the administration is said to be considering Mike Calhoun of the Center for Responsible Lending.
Waters urges Biden to nominate FHFA’s Thompson as agency’s director
The chair of the House Financial Services Committee endorsed acting Federal Housing Finance Agency Director Sandra Thompson as rumors abound that the administration is considering someone else for the job.
Big banks emphasize diversity in capital markets deals
In a recent securitization with Capital One, RBC Capital Markets gave a bigger role to small firms owned by minorities and women. It’s one example of how banks are striving to be more inclusive.
Report finds racial bias in mortgage AI decisioning, MBA fires back
Despite “color blind” underwriting algorithms, loan denial rates on mortgages that were not backed by the Federal Housing Administration and the VA skewed heavily toward minority groups, according to a study by The Markup.
State Street will leave NYC offices in embrace of hybrid work
State Street Corp. will leave its two New York City offices, making good on plans to transition its Manhattan-based staff to a hybrid work model.
Cadence Bank warned on fair lending, in settlement talks with DOJ
In late July, the Justice Department notified the Houston bank of a potential lawsuit alleging violations between 2013 and 2017, according to a securities filing. Cadence said that its prospective merger partner, BancorpSouth, supports the settlement discussions.
Sherrod Brown quickly shifts Senate Banking panel’s course
With a steady stream of Senate hearings held on the racial wealth gap and inequities in the financial system, the new chairman has set a consumer-focused agenda that leans further left than even past Democratic chairs.
Acting CFPB head calls out industry for slow complaint response times
Interim CFPB Director Dave Uejio expressed concern that financial institutions have dragged their feet in resolving disputes with consumers for service issues during the pandemic.
New CFPB boss vows to get tough on military lending, pandemic relief laws
Dave Uejio, acting director of the Consumer Financial Protection Bureau, promised to protect veterans from predatory loans and to crack down on companies that improperly garnish stimulus checks or mistreat struggling borrowers.
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